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Banking sector in Latvia 2021: Structural change and Covid-19 impact

Contributed by ICD Fiduciaries
29 April, 2022

Despite a substantial drop in 2020 due to Covid-19, Latvia's banking sector experienced improved profitability and a significant increase in deposits last year.

In 2021, the banking sector profited EUR 292 million, roughly double the profit of the previous year.

The low base level of 2020, structural changes in the banking sector, some one-off variables, as well as higher overall economic activity and business volumes in various categories, all contributed to profit growth.

One of the leading banks in Latvia - AS Citadele Banka, became the sole owner of SIA UniCredit Leasing in the Baltics in the first quarter of 2021, which had a substantial impact on a several banking industry performance measures.

In Q3 2021, TF Bank AB Latvia's branch began operations in Latvia.

Later that month, Rigensis Bank AS completed a restructuring by re-registering as a commercial company with non-credit institution activities, assuring the preservation of its customers' interests and keeping them informed, as well as meeting its depositor duties.

The shares of the Swedbank Group banks in the Baltics were transferred to the holding company Swedbank Baltics AS founded in Latvia, with the approval of the European Central Bank and other supervisory agencies.

As a result, at the end of the reporting year, 12 banks and four branches of foreign banks from European Union (EU) countries, as well as one holding company, were operating in Latvia.


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